Speaking at the financials release Anil Khanna, Managing Director, Blue Dart Express said "Our results are a validation of our customer's faith in us and of our commitment to serve their business. We are proud to be positioned as the only service provider with a distinctive capability to offer the entire gamut of express distribution solutions. As we move forward, we are committed to providing our customers superior service experience and meet and exceed their express distribution needs. Blue Dart is in its 25th year of its operations and it has been our constant endeavor to provide the best quality services to our customers. Since our inception, we have used advanced technology to provide the Indian customer with a competitive edge and an enhanced customer experience."

For the quarter ended September 08, Blue dart has recorded 27% increase in income from operations to Rs 262.84 crore. However, OPM fell by whooping 650 bps to 8% on the back of increase in Freight, Handling and Servicing Costs by 620 bps to 67.8% of sales. The employee cost has fallen marginally by 40 bps to 16.3% and the other expenditure was flat at 8%. The slow down in the economy and the recession fear globally decelerated volume growth of the company and thus margins were affected. Operating Profit fell by 30% to Rs 20.97 crore following the drop in OPM.

The other income increased by whooping 240% to Rs 3.50 crore. There was interest income of Rs 0.59 crore in the quarter under review, as against interest outgo of Rs 0.09 crore in the corresponding previous quarter. The depreciation has marginally fallen down by 3% and paved PBT down by 22% to Rs 20.85 crore. After accounting 40bps rise in effective tax rate to 34.9%, Net Profit looked faded by 22% to Rs 13.58 crore.

Nine months performance

Blue dart has clocked a strong growth in its net sales by 30% to Rs 747.13 crore. However OPM was under pressure and fell by 240 bps to 13.9%. The fall in OPM is attributed mainly due to spike in Freight handling and servicing charges by 250 bps to 64.7%. However, employee cost fell by 40 bps to 13.7% and other expenditure increased by 30 bps to 7.7%. The operating profit was thus restricted to grow by 11% to Rs 104.03 crore.

For the nine months ended period, the other income zoomed by 150% to Rs 5.41 crore. There was net interest income of Rs 0.64 crore as against Rs 0.37 crore in the corresponding previous period. As one Boeing 737 freighter aircraft was retired, D-Check on the aircraft was fully depreciated in the first quarter of 2007; accordingly, depreciation for the Nine months ended September 30, 2008 is lower by 32% vis-a- vis corresponding previous year period. Thus PBT was up by 26% to Rs 97.90 crore. However, an increase in tax expenses by 23% to Rs 32.95 crore lifted Bottom line by 27% to Rs 64.95 crore.

Other Information;

• The scrip closed at Rs 535 as on October 21, 2008.
• The company is celebrating its 25 year of commencement this year.
• The company has been conferred the 'NDTV Profit Business Leadership Award 2008' in the Logistics sector on October 6, 2008.
• The company, has been conferred the 'Business Superbrand' status by the Superbrands Council at a ceremony held on August 20, 2008 at New Delhi.
• During the quarter ended September 30, 2008 the Company acquired 21, 60,000 equity shares of Blue Dart Aviation Limited and thereby increased its holding from 40 % to 49%.
• Effective 1st November 2008, Blue Dart Express will progressively update the volumetric calculation for its shipments in response to efforts to standardize the volumetric weight calculation for low-density packages. The volumetric divisor will be changed to 5000 and will apply to Blue Dart Domestic Priority, Dart Apex, ATA & Interline products.